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Highlights

  • Mount Gibson agrees to acquire a 50% interest in the Central Tanami Project Joint Venture (CTPJV) from Northern Star Resources for AUD 50 million.

  • The CTPJV holds 1.6Moz of gold (JORC 2012) and includes a 1.2Mtpa processing plant and extensive infrastructure.

  • Mount Gibson shares rose 8.33% to 32.5 cents following the announcement on 16 July 2025.

Mount Gibson Iron Ltd (ASX:MGX) has entered into a binding agreement to acquire a 50% interest in the Central Tanami Project Joint Venture (CTPJV) and adjacent wholly owned exploration tenements from Northern Star Resources Ltd. The acquisition is priced at AUD 50 million in cash, positioning Mount Gibson for a significant presence in one of Australia’s most prospective gold regions.

The Central Tanami Project, located in the Northern Territory, comprises a substantial mining and exploration footprint covering over 2,100 square kilometres. The project is underpinned by JORC 2012-compliant Mineral Resources of 13.8 million tonnes at 3.6 grams per tonne (g/t) gold for 1.6 million ounces of contained gold, most of which lies within granted mining leases. The high-grade Groundrush deposit forms a key part of this resource base.

In addition to the current JORC-compliant resources, the project holds historical (JORC 2004) resource estimates totalling 11.2 million tonnes at 2.7 g/t for 1.0 million ounces. Mount Gibson has stated that work is underway to bring these historical estimates into compliance with JORC 2012 standards, although it is currently uncertain if they will meet the required criteria following evaluation and exploration.

Established Infrastructure and Processing Facilities Included

The acquisition also includes access to a non-operating 1.2Mtpa carbon-in-leach processing plant, which offers a refurbishment opportunity for future development. The site is further supported by key infrastructure such as haul roads, an accommodation camp, a bore field, and a gravel airstrip.

Mount Gibson will share ownership of the CTPJV with Tanami Gold NL, an ASX-listed junior explorer with a common major shareholder. The transaction also grants Mount Gibson ownership of Northern Star’s wholly owned exploration tenements, spanning an additional 3,600 square kilometres.

Attractive Valuation and Forward Timeline

The transaction values the JORC 2012 Mineral Resources at approximately AUD 61 per ounce for the 50% stake and AUD 38 per ounce when including the historical resource estimates. The deal provides Mount Gibson with a potentially high-value near-term development opportunity, leveraging its experience in operating remote-site assets.

Completion of the acquisition remains subject to several key conditions, including Foreign Investment Review Board (FIRB) approval, the extension of existing infrastructure agreements with the Central Land Council, and Tanami Gold’s right of first refusal under the CTPJV terms. These conditions are expected to be met by 31 March 2026.

Mount Gibson plans to accelerate permitting and technical assessments over the next 12 to 18 months, aiming to position the project for a potential development decision in the near term.

Following the announcement, Mount Gibson shares surged 8.33% to 32.5 cents per share on 16 July 2025.